The NEITI/EITI process is based on a multi-stakeholders framework made up of government, oil and gas and solid minerals companies and the civil society. The government and its agencies that either collect, keep custody or manage revenues from the extractive sector, the oil, gas and mining companies that exploit these extractive resources on behalf of the government, and the coalition of civil society organisations that put pressure on both government and the oil companies to give account of their transactions to the people of Nigeria constitute the major stakeholders.
The following government agencies in the oil and gas industry are involved in the NEITI process:-
Department of Petroleum Resources (DPR)
This is a Department in the Ministry of Petroleum responsible for the monitoring, collection of royalties, and for the production data used in the calculation of petroleum profit tax (PPT).
Nigeria National Petroleum Corporation (NNPC)
Two agencies within the NNPC are quite important to NEITI. These are;
a) The Crude Oil Marketing Department (COMD) is responsible for verifying production and sales data, and for establishing a representative price for tax purposes for different crude oils based on market realizations.
b) The National Petroleum Investment Management Service (NAPIMS) approves capital expenditure, purchase contracts, monitors operating and financial results from the Joint Ventures (JVs) and PSCs. NAPIMS also receives management reports and audited accounts from the upstream companies. Visit Website
Federal Inland Revenue Service (FIRS)
The Petroleum and International Tax Department (PITD) of the Federal Inland Revenue Service (FIRS) is responsible for assessing and collecting Petroleum Profit Tax PPT and other direct taxes from the JVs and PSCs. Visit Website
Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) is the depository for royalties, petroleum profit tax (PPT) and other direct taxes, and provides collection information for reconciliation with the tax assessments of the FIRS. Visit Website
Crude Oil Reconciliation Committee
The Crude Oil and Other Revenue Reconciliation Committee is supposed to perform the actual reconciliation of the above listed revenue streams with the CBN accounts. The Committee works under the Federal Ministry of Finance and is composed of representatives from the NNPC, FIRS, DPR and CBN.
Petroleum Products Sales Reconciliation Committee
This Committee is mainly concerned with the reconciliation of revenues received in relation to petroleum products sales. It reconciles revenues received in relation to FGN’s allocation of crude oil to NNPC for purposes of meeting domestic petroleum product market demand and in this capacity is a relevant agency.
Office of the Accountant-General of the Federation (OAGF)
The OAGF is Accountant to the Federal Government and ‘owner’/Manager of the Federal Government Accounts with the CBN.
The following government agencies in the solid minerals sector are involved in the NEITI process:
Ministry of Mines and Steel Development (MMSD)
The Ministry of Mines and Steel Development (MMSD) was established in 1985 by the Nigerian Government to spur the rapid development of the country’s solid minerals resources for economic benefit. It was set up to unlock the economic potentials of the solid minerals sub-sector. It is the principal organ for information, policy and regulatory over-sight in the solid minerals sector in Nigeria. Visit Website
Mining Inspectorate Department (MID)
MID is responsible for amongst others, the supervision of overall exploration activities as well as collecting royalties and other operational fees on behalf of Government. The department also oversees the safe use of explosives in the mineral sector, some of the major solid minerals sector fees collectable by MID on behalf of the Government are mineral royalties, fees for explosives etc.
Artisanal and Small Scale Mining Department (ASMD)
ASMD is responsible for organising, supporting and assisting small-scale mining operations as well as registering and administering ASM operators and mineral buying centres, some of the major solid minerals sector fees collectable by ASMD on behalf of the Government are registration fee for mining association, registration fee for buying centre etc.
Mines Environmental Compliance Department (MECD)
MECD is responsible for the review of all plans, studies and reports required to be prepared by holders of Mineral title in respect of their environmental obligations under the Nigerian Minerals and Mining Act, 2007. It also monitors and enforces compliance by holders of mineral title with all environmental requirements and obligations among others.
Mining Cadastre Office (MCO)
MCO has the exclusive responsibility of issuing and administering mineral titles in accordance with statutory guidelines, mapping mineral zones in the country and management of permits etc.
Nigeria Geological Survey Agency (NGSA)
NGSA conducts Geological survey to determine mineral deposits. They also provide national geo-science information service to the nation’s public and private sector organizations.
Other earlier identified agencies like the Customs, FIRS. Nigeria Custom Service (NCS), CBN, TETFund are equally involved in the process, just as in the oil and gas.
The Civil Society
Civil Society represents the conscience of any society. CSOs are non-governmental organisations primarily involved in advocacy for free, equitable and better society. These include organised labour, professional associations, student unions and others working in specific thematic areas of interest. In the EITI/NEITI process, the role of the civil society is key and unique from the elementary stage of Sign-Up through Preparation to the critical stage of Disclosure through Dissemination to the stage of Validation. In each of these stages in the NEITI/EITI process, the civil society roles are summarized as:
- Agenda setting
The relationship between NEITI and CSOs is being guided by a Memorandum of Understanding (MOU).